Goldman Sachs Reopens Cryptocurrency Trading Desk amid Growing BTC Adoption

Updated on Mar 2, 2021 at 11:13 am UTC by · 3 mins read

Goldman Sachs first launched a cryptocurrency trading desk back in 2018. However, at that time, Bitcoin’s price was plunging, which did not encourage interest in the currency at all.

Goldman Sachs Group Inc (NYSE: GS) is reopening its cryptocurrency trading desk. Starting next week, it will offer Bitcoin (BTC) futures and non-deliverable forwards (NDFs). According to those familiar with the matter, Goldman Sachs is also considering offering Bitcoin exchange-traded funds (ETF). Besides, it is exploring the potential of digital asset custody.

As Reuters has reported, the team behind the trading desk will sit within the company’s Global Markets division. Goldman Sachs’ decision to relaunch cryptocurrency trading desk results from the Bitcoin boom and its expanding adoption. As the digital assets sector is growing rapidly, Bitcoin has been embraced by institutional investors, with big names showing interest in BTC investments. For example, Tesla Inc (NASDAQ: TSLA) is one of the latest companies that gave a chance to Bitcoin and made a $1.5 billion BTC investment. Japanese e-commerce and online retailing company Rakuten Inc (TOKYO: 4755) has added Bitcoin to its platform as well.

Citigroup Inc (NYSE: C) has laid out a case for Bitcoin to play a bigger role in the global financial system as well. As Citigroup explained, they believe Bitcoin could become “the currency of choice for international trade” in the years ahead.

Over the past year, Bitcoin soared by over 470%. Now, many investors consider it as a hedge against inflation, while others believe in the currency’s potential to become a mainstream form of payment in the future.

As of the press moment, Bitcoin is trading at $49,095.77. Its market cap has reached $916 billion.

Goldman Sachs Cryptocurrency Trading Desk: Now the Right Time?

Goldman first launched a cryptocurrency trading desk back in 2018. However, at that time, Bitcoin’s price was plunging, which did not encourage interest in the currency at all. Besides, the regulatory situation in the US was still a gray area when it came to digital assets. Therefore, Goldman Sachs abandoned its plans, saying that BTC was “not an asset class” and “not a suitable investment”. Instead, the bank decided to focus on cryptocurrency custody service.

It seems now it is the right time for Goldman Sachs to get back to its original plans. Earlier this year, the Global Head of Commodities Research in the Global Investment Research Division at Goldman Sachs, Jeff Currie, said that the Bitcoin market is “beginning to become more mature.”

Currie said:

“I think in any nascent market you get that volatility and those risks that are associated with it.”

Even Peter Schiff, one of Bitcoin’s harshest critics, has admitted that Wall Street has changed its stance on the currency.

Bitcoin price expectations are growing as well. In particular, Morgan Creek’s CEO Mark Yusko believes Bitcoin has all chances to hit $100,000 this year. Meanwhile, Gemini exchange founders Tyler and Cameron Winklevoss state that Bitcoin is “a better gold than gold,” which means that its price rising to $500,000 is now inevitable.

Share:

Related Articles

Bitcoin Selling Pressure on the Rise: What to Expect?

By April 4th, 2025

Bitcoin recently saw a major unstaking event, long-term holders’ movement, and looming Bitcoin options expirations, all contributing to potential price volatility.

Arthur Hayes Explains Why Trump Tariffs Are Good for Bitcoin

By April 4th, 2025

BitMEX co-founder Arthur Hayes argues that Trump’s reciprocal tariffs will ultimately benefit Bitcoin by weakening the US dollar and increasing the demand for alternative assets.

Bitcoin ETFs Saw $220M in Inflows Despite BlackRock’s Selloff, Trump’s Tariff War

By April 3rd, 2025

US-based spot Bitcoin exchange-traded funds recorded an impressive surge in inflows while the leading product saw $116 million in outflows amid the United States tariff war.

Exit mobile version